Tech/Ops Sevcon Inc.
155 Northboro Road
Southborough, MA 01772
Telephone (508) 281 5510
News Release
For release: Immediately
For further information contact: Paul McPartlin
TECH/OPS SEVCON REPORTS STRONG THIRD QUARTER REVENUES AND PROFITS
Southborough, Mass. July 24, 2007.. Tech/Ops Sevcon, Inc. (AMEX symbol TO)
reported a 31% increase in net income to $483,000, or $ .15 per share,
for the third fiscal quarter ended June 30, 2007.
Third quarter 2007 compared to third quarter 2006
* Sales increased by 11% to $10.3 million; volumes up 6%, positive
foreign currency impact of 5%.
* Operating income of $782,000 was up by $198,000, or 34%. Foreign
currency fluctuations had an adverse impact of $228,000; underlying
operating income was 73% ahead of last year.
* Net income was 31% ahead of last year at $483,000. Foreign currency
changes reduced net income by $166,000; underlying profits were up by
75%.
* Diluted net income per share was $.15 compared to $.12 last year.
Before the adverse impact of foreign currency changes, net income per
share was 67% above last year.
Nine months year-to-date 2007 compared to 2006
* Revenues of $28.9 million were 13% ahead of last year; volumes up 7%,
positive foreign currency impact of 6%.
* Operating income was $1,884,000, an increase of 36%. Excluding foreign
currency fluctuations operating income improved by 66%.
* Net income was 31% ahead of last year at $1,139,000. Foreign currency
changes reduced net income by $351,000; underlying profits were up by
71%.
* Diluted net income per share was up by $.08 at $.36. Before the impact
of the weakening US dollar,diluted net income per share was 64% above
last year.
Tech/Ops Sevcon, Inc. is a world leader in the design, manufacture and
marketing of microprocessor based controls for zero emission electric
vehicles. The controls are used to vary the speed and movement of
vehicles,to integrate specialized functions, and to prolong the shift
life of the vehicles' batteries. Sevcon supplies customers throughout
the world from its operations in the United Kingdom, the USA, France,
and the Far East, and through an international dealer network. The
Company's customers are manufacturers of fork lift trucks, aerial lifts,
mining vehicles, airport tractors, sweepers, and other battery powered
vehicles.
Third Quarter 2007 Financial Highlights (unaudited)
(in thousands except per share data)
Three months ended Nine months ended
------------------ -----------------
June 30 July 1 June 30 July 1
2007 2006 2007 2006
------ ----- ------ -------
Net sales $10,341 $9,313 $28,941 $25,696
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Operating income 782 584 1,884 1,390
Income before income taxes 735 564 1,744 1,335
------- ------ ------- --------
Net income $483 $369 $1,139 $871
------- ------ ------- --------
Basic income per share $.15 $.12 $.36 $.28
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Diluted income per share $.15 $.12 $.36 $.28
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Cash dividend per share $.03 $.03 $.09 $.09
------- ------ ------- --------
Average shares outstanding 3,172 3,144 3,162 3,134
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Summarized Balance Sheet Data (in thousands of dollars)
June 30, September 30,
2007 2006
(unaudited) (derived from
audited
statements)
---------------- -------------
Cash, and cash equivalents $907 $1,290
Receivables 8,828 6,187
Inventories 5,876 4,717
Prepaid expenses and other current assets 953 847
------ ------
Total current assets 16,564 13,041
Long-term assets 6,156 5,611
------ ------
Total assets $22,720 $18,652
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Other current liabilities 8,107 5,673
Liability for pension benefits 2,964 2,886
Other long-term liabilities 59 56
Stockholders' equity 11,590 10,037
------ ------
Total liabilities and stockholders' equity $22,720 $18,652
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